How do demographics and other factors impact car insurance rates?
Who you are as a driver has a major impact on what you pay for car insurance. Your age, your credit score, and your driving record (which all impact your insurance score), are all taken into consideration by insurance companies when they price quotes. Let’s review the core aspects of your driving profile and how they impact your car insurance.
Your age is one way your insurance company assesses your driving experience. Younger drivers, especially teenage drivers, are statistically more likely to take risks behind the wheel and cause an accident. On average, teen drivers pay 302% more for car insurance than do drivers in their 50s, with all other metrics constant.
If you’re interested in more information on car insurance and age, see our related content below:
In nearly every US state, credit score is used as a major rating factor to determine your car insurance rates. According to the Federal Trade Commission, drivers with low credit file more expensive — and more frequent — claims. Thus, they’re more expensive and risky customers.
Our data, which can be explored in greater depth below, shows drivers with poor credit (350-500) pay almost $1,200 more per year for car insurance than do drivers with excellent credit.
Your driving history helps insurers understand the kind of driver you will be in the future. A history of claims, speeding tickets, or other citations will drastically raise your premium. On average, a driver who has been responsible for an at-fault crash pays $617 more per year than a driver without a collision on their record. For more information on your driving record impacts on your premium, see our related articles below.
Aside from age, credit score, and driving record, other demographic qualities impact car insurance rates. Below are articles that explore this.
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